Any sign that things are improving in the Eurozone always provides a boost for the Euro and today’s German and Eurozone ZEW Surveys are no exception.
The survey for German economic sentiment beat economist expectations by rising more than expected in June, easing worries over the impact of the Eurozone debt crisis on the region’s largest economy.
According to the ZEW Centre or economic research its index of economic sentiment rose by 2.1 points to 38.5 in June and up from May’s reading of 36.4. Economists had been expecting the index to rise by 1.7 points to 38.1 in June.
“Through the ‘catching-up’ effect after the long winter, the second quarter should be very positive,” said Johannes Gareis, an economist at Natixis bank in Frankfurt. “The recovery in Germany will be driven more by domestic demand and less by demand from abroad.”
Adding to the positive picture was the index for economic sentiment for the wider Eurozone which also beat expectations. Sentiment improved to 30.6 in June, up from the reading of 27.6 in May. Economists had been expecting sentiment to improve to 29.4.
Following the data’s release the Euro strengthened against the US Dollar, Sterling and a number of its most traded peers.
Earlier in the day data revealed that car sales in the European Union fell to a 20-year low in May showing that the Euro crisis is still in full swing as rising unemployment and austerity measures continue to bite people’s wallets.
New car registrations fell by 5.9% with new car sales falling by 10.4% in France, 9.9% in Germany, and 8% in Italy, in Cyprus sales crashed by 41.4% as the small nations economy begins to be ravaged by its recent troubles.
Despite the still grim picture for the Eurozone it seems that investors are clinging on to any good piece of news as they still believe that the region will begin to make a recovery later in the year.
Current Euro (EUR) Exchange Rates
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3380
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8548
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4162
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6802
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7472
The Pound Sterling /Euro Exchange Rate is currently in the region of: 1.1713
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7079
The New Zealand Dollar/Euro Exchange Rate is currently in the region of: 0.5955
(Correct as of 10:45 am GMT)